Espirito retains sell on SAIL

Espirito Santo maintained 'Sell' on SAIL and reduced fair value for the company to Rs 63 per share from Rs 94 earlier. The broking firm said that "actual benefits" of SAIL's modernisation and expansion plans will be seen only in 2014-15. Mining profits could come under pressure due to slow progress in the company's raw materials division, Espirito analysts said in a note.

Despite positives from declining coking coal prices and inventory destocking in the second half of FY13, there are concerns such as higher employee cost provisioning and an expected rise in fixed costs. "So despite the sharp fall in the share price, we remain sellers of SAIL on the back of structural issues like execution delays and concerns over its future mining profitability," the analysts said.